Today’s Wall Street Journal reports store brands accounted for a record 26% of its grocery revenue in the quarter.
“In this economy, customers are much more willing to try a private-label item,” says Kroger CEO David Dillon.
In another sign of how the weak economy is changing shoppers’ behavior, Kroger has experienced “noticeable improvement” in sales at its discount-oriented stores, such as Food 4 Less, in the past three to six months.”
Need to fight off Private-Label pirates? Here are a few ideas.
Anyone who markets to young Moms needs to understand how these women interact with technology. But if you really want to get a clear sense what’s going on, maybe it’s time to fire your futurists, and start taking a closer look at social histories of the early 1900s.
Selling to Gen Y Moms in 2008 looks more and more like selling to new Moms in 1908.
Research by Yahoo! and Carat Interactive, conducted by Harris Interactive and Teenage Research Unlimited takes a fresh look at Generation Y and its uses of media.
“What makes Gen Y people different is the way they are consuming media,” says Beth-Ann Eason, vice president, Category Management at Yahoo!. “Research that Yahoo! and Carat commissioned earlier this year showed that not only are teens spending more time with the Internet than TV, but that they also use the Internet as the hub of their media activity. The Internet is the medium from which all other media decisions get made, and that’s a powerful tool for marketers.”
Gen X and Gen Y Moms: How Are They Different?
In broad terms, it’s safe to say Gen X Moms use the web to get things done, and Gen Y Moms use the web to connect.
NewMediaMetrics recently surveyed moms who visited Parenting.com. While both Gen X and Gen Y Moms had similar objectives of exploring mom-related issues online, Gen Y moms tend to have much higher attachment to interactive tools that allow them to connect directly with other moms: online communities, blogs, video-sharing sites. By contrast, Gen X moms have a more utilitarian view: online shopping, researching and reviewing products, and organizing photos.
For the PDF file on the study, please visit Parenting here. (PDF Download)
Some Surprising Facts
In their 2007 book, Connecting to the Net.Generation: What Higher Education Professionals Need to Know About Today’s Students, Reynol Junco and Jeanna Mastrodicasa found that in a survey of 7,705 college students in the US:
* 97% own a computer
* 97% have downloaded music and other media using peer-to-peer file sharing
* 94% own a cell phone
* 76% use instant messaging and social networking sites
* 75% of college students have a Facebook account
* 60% own some type of portable music and/or video device such as an iPod
* 49% regularly download music and other media using peer-to-peer file sharing
* 34% use websites as their primary source of news
* 28% author a blog and 44% read blogs
* 15% of IM users are logged on 24 hours a day/7 days a week
Are We Seeing Women As They’re Seeing Themselves?
In my opinion, the imagery of Moms in a lot of advertising is in many ways still 20 years behind the times. There are still a lot of 1980s “I can have it all” moments — the Dynasty shoulder pads are gone, but the attitude lingers like Joan Collins’ perfume. In many ways, this summer’s Sex In The City movie had it more right than marketers do: it’s about friends and connections more than it is about some stale image of an uber-Mommy.
And maybe that’s exactly where we need to start. Good marketing starts with good listening and a willingness to learn. Hasn’t it always?
Photo Credit (Mommy Blogger): Scott Beale / Laughing Squid
Today, doubtless most of us are thinking more about the future of the banking industry and our 401Ks than about the future of media.
But if you’re in the mood to be distracted, read Media Post’s worthwhile recap of its “Future of Media Roundtable” held in New York. A bit more print-centric than I would have expected, but I guess it all depends on your perspective. Panelists included Bant Breen of IPG Emerging Media Lab, David Kenney of VivaKi, and Esther Dyson.
Karl Greenberg reports in yesterday’s Media Post that Procter & Gamble will be launching the new Oral-B Pulsonic toothbrush entirely through digital, PR, events, print and in-store. They’re giving TV the toothbrush-off: it’s not part of the launch at all.
It’s not a typical P&G move, but I think it’s very smart. Here’s why:
Don’t be surprised if the “TV is dead” crowd online trumpets this as incontrovertible proof that digital has at last killed TV once and for all. But, don’t believe the hype either.
This is the most traditional thing you can imagine: P&G being a smart marketer.
“If there is to be peace in the world,
There must be peace in the nations.
If there is to be peace in the nations,
There must be peace in the cities.
If there is to be peace in the cities,
There must be peace between neighbors.
If there is to be peace between neighbors,
There must be peace in the home.
If there is to be peace in the home,
There must be peace in the heart.
Lao Tzu (570-490 B.C.)
An unusually useful article on mobile in today’s Ad Age: less “pie-in-the-handset” and much more “here’s what’s actually being done and how it’s working”.
Excellent, commonsense advice from Ogilvy’s Maria Mandel:
“A consumer is looking for one of three things. (…) information (…) entertainment (or) community (…) building interaction between people using their mobile devices?
Mark Baynes, CMO of Kellogg’s, recently made a pretty stunning announcement:
“analysis of the Special K initiative of the last 18 months showed digital media exceeding that of broadcast ROI”… “by a factor of well over two.”
Mr. Baynes offered no details about how ROI was calculated, which is too bad. Getting to a concrete ROI in CPG in any medium is extremely difficult. (Believe me on this: I can show you the scars). I’m very curious how they got to more than 2x ROI vs. TV and hope more is revealed soon.
Nor did he say much about what they did right online. I have no inside information about what worked and what didn’t. But that won’t stop me from offering some educated guesses:
Secret 1: Give The Brand A Digital Mission
Special K is not just a bowl of crunchy cereal and a few line extensions. It’s a diet partner with an explicit, concrete promise: drop up to a jean size in 2 weeks. That’s compelling stuff, and it gives its digital efforts a digital reason for being. Few people are interested in going to a website that lays out product features. Many people are interested in visiting a website that can keep them from looking ginormous in their jeans.
Secret 2: Understand “View Vs. Do”
As I’ve said before, TV is a “view” medium: “I’ve got some time to kill, let’s see what’s on”. The Internet is a “do” medium: “I’ll check the scores on ESPN, return some emails, and post to my blog.”
Instead of a list of features and benefits, Kellogg’s Special K website offers customized plans for consumers, sign-ups for a Yahoo e-mail group, and tips from a trainer and nutritionist. They don’t just say “view our promises about your diet”. They help consumers do something that matters.
Secret 3: Integrate Brand and Search
Kellogg’s deal with Yahoo is genius: a search turns up a paid search ad that works more like a brand ad. It’s full of “what can we do to help you?” which is exactly what’s needed in this medium. Did they give up something by not going with Google, considering how dominant Google is in search? Yes. But, remember that if you do a search for “Special K” on Google you will get more results about ketamine than about the brand.
Secret 4: Don’t Get Suckered Into Either/Or Thinking
Kellogg’s ROI online is heavily influenced by their TV advertising. Kellogg’s ROI on TV is almost certainly influenced by what they do online. The guys in Battle Creek aren’t arguing over whether to do TV or online. They’re doing both.
Point two of this: you could argue that some of this is more PR than advertising, or more promotion than PR, or more display than search. But, while you were arguing your ROI would not improve by one tenth of one percent. The lesson? Focus on what works, not what tactical bucket the idea belongs in.
Secret 5: Test, Learn and Improve
Kellogg’s has been working digitally for years. Their ROI improvement didn’t come overnight. Neither will yours, or mine.